Chinese Company Law & Securities Law

1. Chinese Company Law & Securities Law Professor LUO Peixin East China University of Political Science and Law Feb. 2013

2. Brief Self-Introduction • JSD Peking University (2000-2003), Comment editor of the Peking Law Review • Visiting Professor to Yale University (2009) Visiting Professor to USF Law School (2007) Academic Visitor to Oxford University (2001) • Post doctoral research Fellow of Chinese Academy of Social Science (2003-2005) • Senior research fellow for Haitong Securities Stock Company (2003-2004)

3. Publications • The Contractual Perspective on Corporate Law (Beijing University Press, 2004) • Translations: 1.The Economic Structure of Corporate Law (Harvard University Press, 1991) 2.Dispute Settlements in the World Trade Organization: Practice and Procedure (Cambridge University Press, 2004) 3.Dividend Policy and Corporate Governance (Oxford University Press, 2004) 4.Corporate Governance in a Changing Economic and Political Environment: Trajectories of Institutional Change (Palgrave Macmillan,2003) 5. Law and Capitalism (Chicago University Press, 2010)

4. 罗培新，1974年生，北京大学国际金融法专业博士，中国社会科学院法学所博士后，华东政法大学科研处处长、国际金融法律学院院长、教授，博导，教育部新世纪优秀人才，上海市曙光学者，上海市第三届十大“优秀中青年法学家”，新华社特约咨询专家。罗培新，1974年生，北京大学国际金融法专业博士，中国社会科学院法学所博士后，华东政法大学科研处处长、国际金融法律学院院长、教授，博导，教育部新世纪优秀人才，上海市曙光学者，上海市第三届十大“优秀中青年法学家”，新华社特约咨询专家。 • 2009年-2010年赴美国耶鲁大学访问；2007年赴海牙参加世界法律大会；2007年任美国旧金山大学客座教授，2001年赴英国牛津大学学习交流，2003年7月－2004年7月任职海通证券研究所高级研究员，1996-1997年供职于上海市浦东新区检察院。 • 中文著作： 《公司法的合同解释》、《WTO与国际金融法律实务》、《最新证 券法解读》等九部 • 英文译著：《公司法的经济结构》、《WTO中的争端解决：实践与程序》、　　　　　 《转型政治和经济背景下的公司治理》、《股利政策与公司治理》等 • 论文：在《中国社会科学》、《北京大学学报》、《法学研究》、《中国法学》、《中外法学》、《US-China Law Review》等刊物发表中英文论文两百余篇，多篇转载于《新华文摘》、《中国社会科学文摘》。另在《解放日报》、《南方周末》、《二十一世纪经济报道》、《China Daily》等发表中英文财经法律时评五十余篇。 • 获奖：北京大学第九届“挑战杯——五四青年科学奖”一等奖、中国法学会证券法学研究会2009年会优秀论文一等奖、中国法学会商法学研究会2005年年会优秀论文评选一等奖、2004年深交所第六届会员单位和基金公司优秀研究成果一等奖、北京大学创新奖、美迈斯“面向二十一世纪法学奖学金”特等奖、君合律师人才奖学金、宝钢奖、北京大学优秀毕业生、中国社会科学院优秀博士后、华东政法大学第十三届、第十四届、第十五届、第十六届“学生心目中的最佳教师”等若干奖励。

5. President of Yale University Prof. Richard Levin

6. Director of Corporation Law Research Center, Yale Law SchoolProf. Roberta Romano

8. Dean of Law School, Cambridge UniversityDirector of Corporation Law Research CenterProf. Ellis Ferran

9. Director of Corporation Law Research Center,The University of PennsylvaniaProf. Jill E.Fisch

10. Prof. Jill E. Fisch

11. Chinese Company Law & Securities Law

12. Warm Notes • Two English Versions of Chinese Company Law Provided by CSRC • Any Question: http://blog.sina.com.cn/luopeixin

13. Purpose of the Course • A survey of how to form, manage and liquidate a company • An overview on shareholders’ protection • A description and illustration on some related controversial issues in China

14. The Outline of the Course • The Establishment of LLC and Company Limited by shares • The Corporate Governance • The Fiduciary Duties of Directors & Managers • The Rights of Shareholders and Their Remedies • The Direct & Derivative Suit

15. The Most Controversial Case in Recent Years A Bank Debts 1.5 Billion(Ⅰ) AListed Company (Construction Bank)(Zheng Baiwen Comany) Due Claim allotment 1.5 Billion (Ⅱ) exemption(Ⅳ) 50% Shares Transfer(Ⅴ) Assets Management Com. Sale (Ⅲ) A Company Limited by Shares (Xin Da AMC) (San Lian Company)

16. Government: the killer behind the curtain? • Regional Court the claim for A’ assets will be delayed other creditors • Apply for Bankruptcy（5） • pay back the loan 3 Million （4） • A SOE C Bank • Acquire assets 3 Million （3） • Bank lending 3 Million（2） • loan payment 3 Million (6) • Contribute 500 Thousand RMB（1） • B SOE Local Government

17. General Introduction • General comparison on legislation of company law between US and China • The history of Chinese Company Law

18. Map of the USA

19. Map of the USA

20. Some US Statutory sources of Corporate Law • MBCA-Model Business Corporation Act • Cal. Corp.-California Corporations Code • Del. GCL.-Delaware General Corporation Law • N.Y BCL.-New York Business Corporation Law

21. Chinese Administrative Regions

22. Map of China

23. One Unitary Country with Multiple Legal Jurisdictions • People’s Republic of China (PRC) Law 22 provinces, 4 municipalities, 5 autonomous regions • Hongkong Special Administrative Region (HK SAR) Law HK SAR Basic Law, April,1990. • Macau Special Administrative Region (Macau SAR) Law Macau SAR Basic Law, March,1999. • Taiwan Special Administrative Region (Taiwan SAR) Law-In the future

24. Figure: Sources and hierarchy of Chinese law Binding force

25. Table: Legislative bodies and titles of legislation

26. The Distribution of Foreign Direct Investment (FDI) in China (%), 2006 (100 million USD)

27. General Introduction to the History of Chinese Company Law • December 29, 1993 took into effect on July 1, 1994 • December 25, 1999 Revised for the first time • August 28, 2004 Revised for the second time • October 27, 2005 Revised for the third time took into effect on January 1, 2006

28. Brief Introduction to the Revisions on Chinese Company Law • The Company Law of 1994 • The Company Law of 1999 • The Company Law of 2004 • The Company Law of 2005

29. The Company Law of 1994 Establish two kinds of companies Recognize the limited liability principle Formulate the basic framework of Corporate Governance

30. The Company Law of 1999 • Permit a flexible capital requirement on high-tech companies • Introduce the Special Supervision Institution on SOEs

31. The Company Law of 2004 • Abolish the Approval of CSRC on Price above par value of IPO • Introduce the Market-based Pricing of IPO

32. The Company Law of 2005 Authorize the State Council to legislate Introduce the Mechanisms, including One-person company Piercing the corporate veil Cumulative Voting Dissented Shareholder’s Appraisal Right Relax listing standards of companies

33. Basic Attributes of Corporations • Independent and Perpetual Existence • Locus of the power is the Board of Directors • Shareholders are last in line to get returns • Corporate insiders are not personally liable to outsiders on corporate business debts